Q2 2025 Steelcase Inc Earnings Call Transcript
Key Points
- Steelcase Inc (SCS) reported strong earnings growth with a 26% increase in adjusted earnings per share to $0.39.
- The company achieved 2% organic revenue growth and has driven year-over-year gross margin improvement for nine consecutive quarters.
- Steelcase Inc (SCS) saw significant growth in the education segment, with Smith System business growing 18% year over year.
- The company has made progress in its diversification strategy, showing growth in healthcare, small- and medium-sized businesses, and consumer segments.
- Steelcase Inc (SCS) has a strong liquidity position with $507 million in liquidity, exceeding its total debt of $447 million.
- Orders in the international segment declined by 11%, driven by declines in most major markets except India.
- Revenue of $856 million was slightly below the midpoint of the estimated range provided in June.
- The company faces challenges with the timing of project orders and requested delivery dates, which could impact financial results in the second half of the year.
- Operating expenses are projected to be between $225 million to $230 million in Q3, which includes $4.3 million of amortization related to purchase intangible assets.
- The effective tax rate is projected to be approximately 27%, which could impact net earnings.
Good morning. My name is Rob, and I will be your conference operator today. At this time, I would like to welcome everyone to the Steelcase second-quarter fiscal 2025 conference call. (Operator Instructions) Thank you.
Mr. O'Meara, you may begin your conference.
' -
Thank you, Rob. Good morning, everyone. Thank you for joining us for the recap of our second-quarter fiscal 2025 financial results. Here with me today are Sara Armbruster, our President and Chief Executive Officer; and Dave Sylvester, our Senior Vice President and Chief Financial Officer.
Our Q2 earnings release, which crossed the wires yesterday, is accessible on our website. This conference call is being webcast, and this webcast is a copyrighted production of Steelcase Inc. A replay of this webcast will be posted to ir.steelcase.com later today.
Our discussion today may include references to non-GAAP financial measures and forward-looking statements. Reconciliations to the most comparable GAAP measures and
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